In the past 20 years, per capita incomes in China´s rural areas has increased 7 times. Meanwhile, energy consumption has doubled. With the improvment of living standards, coal and liquefied gas has replaced more traditional sources of energy, such as straw and firewood.

During the 11th Five-Year Plan which spans from 2006 to 2010, China has set energy-consumption adn pollutant emissions reduction targets. This will help to strengthen energy conservation and environmental protection.

In 2008, Baosteel, China´s largest iron and steel maker, reach an agreement with an Australia Mining Group Rio Tinto on hiking iron ore prices. However, for Chinese companies, the rising cost of energy and raw materials continue to be a major headache.